360Dx Top 30 Falls 3 Percent in October

NEW YORK – The 360Dx Top 30 fell 3 percent in October, mirroring a drop in the broader market.

The Top 30 was in line with the broader markets, as the Dow Jones Industrial Average declined 1 percent, and the Nasdaq fell nearly 1 percent. The Nasdaq Biotech Index decreased 2 percent month over month.

The Top 30's largest gainers were GeneDx (+92 percent), Castle Biosciences (+22 percent), and Bio-Rad Laboratories (+7 percent). The main decliners were CareDx (-29 percent), Myriad Genetics (-20 percent), and QuidelOrtho (-17 percent).

GeneDx's stock soared last month after announcing its Q3 2024 financial results, reporting that its revenues rose 44 percent to $76.9 million in the quarter and that it had reached profitability on a non-GAAP basis. The revenue growth was driven by increased revenue from diagnostic exome and genome sequencing tests. Revenues significantly beat the average Wall Street estimate of $65.0 million.

Castle Biosciences, in contrast, had little news to explain its share price increase last month.

Like GeneDx, Bio-Rad Laboratories also saw its stock price boosted from the announcement of its financial results. The firm reported that revenues rose approximately 3 percent in Q3, with CEO Norman Schwartz saying that the clinical diagnostics business was "back to normal." However, the firm also announced that it is indefinitely postponing the launch of its integrated digital PCR system, the QX Continuum.

Among the decliners, CareDx had two key pieces of news in October that may have affected its share price. Early in the month, the US Department of Justice concluded its investigation into the firm's business practices and found no wrongdoing and declined to take further action. The agency opened a False Claims Investigation into the company's kidney testing and phlebotomy services practices in 2021.

Later in the month, CareDx announced preliminary Q3 2024 financial results, saying that it expected a 23 percent increase in revenues compared to Q3 2023. It also anticipates testing service revenue to rise 26 percent and patient and digital solutions revenue to increase 20 percent. Product revenues are expected to grow 7 percent.

According to BTIG analyst Mark Massaro, the firm's share price declined 16 percent after the company's analyst day, likely because it did not provide any comment on its 2024 guidance and declined to take questions during the event. In a note to investors, Massaro wrote that in his view, "the new management team simply made an error in judgment in its communications style and is not likely to repeat this again in the future."

Myriad Genetics also announced preliminary Q3 financial estimates and said it had entered into multiple partnerships. The firm said it expects to report between $210 million and $212 million in revenue despite divesting its European EndoPredict business in August.

Myriad also announced five research collaborations to study the use of its Precise MRD test in breast cancer minimal residual disease monitoring, including with MD Anderson Cancer Center, the University of Rochester Medical Center, and the Cleveland Clinic.

Later in October, Myriad entered into a new collaboration with Roche subsidiary Flatiron Health to make Myriad's MyRisk hereditary cancer test available for clinicians to order through Flatiron's cloud-based electronic medical record system OncoEMR.

Like Castle Biosciences, QuidelOrtho had no key news to explain its change in share price.

*Abbott paid a dividend of $.55 per share on Oct. 15.

**Quest Diagnostics paid a dividend of $.75 per share on Oct. 4.

***Revvity paid a dividend of $.07 per share on Oct. 18.